Articles Posted in Government & Administrative Law

At issue before the Pennsylvania Supreme Court in this matter was whether sales or use taxes must be paid in relation to two distinct items: the purchase of a closed-circuit horse-racing simulcasting system, and the payment of royalties for intellectual property used in conjunction with the operation of video poker machines. For the Taxpayer's off-track wagering locations, it used video poker machines. Taxpayer entered into a service contract with Teleview Racing Patrol, Inc., pursuant to which Teleview supplied equipment such as screens, satellite dishes, and closed-circuit television feeds. These items were used to provide live displays at each OTW facility of races occurring at Pocono Downs and other tracks across the country. Teleview provided the equipment for this system and, per the agreement, it also supplied personnel to install, maintain, and operate that equipment. In relation to the video poker games, Taxpayer purchased machines from International Gaming Technologies, PLC (“IGT”), on which it paid taxes which are not in dispute. In accordance with a separate intellectual property agreement, Taxpayer also paid IGT royalty fees for intellectual property associated with the various different “themes,” i.e., different poker games that would run on the machines. After a Pennsylvania Department of Revenue audit, Taxpayer was assessed approximately $340,000 in unpaid sales and use taxes, mostly stemming from Taxpayer’s payments to Teleview under the service contract. In challenging the assessment, Taxpayer concluded it had erroneously paid the $13,000 in taxes on its payment of royalty fees to IGT; thus, it sought a refund of those monies. After the Department denied relief, Taxpayer sought review of both matters in the Commonwealth Court, which consolidated the appeals. The court found Teleview consolidated taxable and nontaxable charges on its invoices. The panel thus concluded that Taxpayer had failed to present documentary evidence specifying which portions of the billed amounts were nontaxable, as required by departmental regulations. The Court also rejected Taxpayer's request for a refund on taxes it paid for IGT's royalty fees. The Pennsylvania Supreme Court reversed the Commonwealth Court's order insofar as it upheld the Board of Finance and Revenue's determination relative to the IGT contract, but affirmed in all other respects. View "Downs Racing, LP v. Pennsylvania" on Justia Law

Appellees were suburban common carriers which, pursuant to certificates of public convenience, were authorized to provide hail or call taxicab services, known in the industry as “call or demand services,” in the Commonwealth. Appellees were also authorized to provide call or demand services in limited portions of the City, while being prohibited from providing call or demand service to the City’s business or tourist districts, Philadelphia International Airport, 30th Street Station, or City casinos. Taxicabs which were authorized to provide call or demand service throughout the City were known as “medallion taxicabs,” while appellees operated what were known as “partial rights taxicabs.” Prior to 2004, PUC was responsible for regulating all taxicab service in the Commonwealth. Medallion taxicabs were regulated pursuant to the Medallion Act, and all other taxicabs, including those operated by appellees, were regulated pursuant to the Public Utility Code and PUC regulations. Appellants, the Philadelphia Parking Authority (PPA) and the Pennsylvania Public Utility Commission (PUC), appealed a Commonwealth Court order invalidating a jurisdictional agreement between PPA and PUC and concluding certain PPA regulations were invalid and unenforceable as to partial rights taxicabs operating in the City of Philadelphia (City). The Pennsylvania Supreme Court reversed the Commonwealth Court’s order in part (with regard to amended Count IV of the Amended Petition for Review), and affirm it in part (with regard to Counts V-VIII). The Court found the Commonwealth Court erred in concluding the Jurisdictional Agreement violated appellees’ substantive due process rights. The purpose of the Jurisdictional Agreement was to clarify whether PPA, PUC, or both agencies would regulate a trip which is subject to dual jurisdiction, and the Agreement simply states that where dual jurisdiction exists PUC cedes jurisdiction to PPA. The Court affirmed the Commonwealth Court in all other respects. View "Bucks Co. Svc., et al. v. PPA" on Justia Law

The Pennsylvania Supreme Court granted discretionary review to address two issues associated with workers’ compensation claims by firefighters suffering from cancer. First, the Court had to determine the evidentiary requirements for a claimant to demonstrate that he or she has an “occupational disease,” as that term is defined in Section 108(r) of the Workers’ Compensation Act (the “Act”). Second, the Court had to decide whether epidemiological evidence may be used by an employer to rebut the evidentiary presumption that the claimant’s cancer is compensable as set forth in Section 301(f) of the Act. With respect to the first issue, the Supreme Court concluded that pursuant to Section 108(r), the claimant has an initial burden to establish that his or her cancer is a type of cancer that is capable of being caused by exposure to a known IARC Group 1 carcinogen. With respect to the second, the Court concluded that epidemiological evidence was not sufficient to rebut the evidentiary presumption under Section 301(f). View "City of Phila. FD v. WCAB; Appeal of: Sladek, S." on Justia Law

The Pennsylvania Office of the Attorney General (OAG), on behalf of the Commonwealth, filed suit against more than two dozen nursing homes and their parent companies (collectively, “Appellees”), alleging violations of the Unfair Trade Practices and Consumer Protection Law, (“UTPCPL”), and unjust enrichment. After consideration of Appellees’ preliminary objections, the Commonwealth Court dismissed the claims and this appealed followed. After its review, the Pennsylvania Supreme Court found the dismissal of the UTPCPL claims was improper, but the dismissal of the unjust enrichment claim was proper because the claim was filed prematurely. Accordingly, the Court reversed the Commonwealth Court’s order and remanded for further proceedings. View "Commonwealth, AG Shapiro v. GGNSC LLC, et al" on Justia Law

This appeal involved a constitutional challenge to a provision of the City of Philadelphia's Property Maintenance Code that required owners of vacant buildings that were a “blighting influence” to secure all spaces designed as windows with working glazed windows and all entryways with working doors. Appellees, owners of a vacant property that was cited for violating this ordinance challenged the provision, largely contending that it was an unconstitutional exercise of the City’s police power. The City’s Board of License and Inspection Review (“Board”) rejected Owners’ arguments; however, the trial court agreed with Owners and deemed the ordinance unconstitutional. The Commonwealth Court affirmed, concluding that the ordinance was an unconstitutional exercise of the City’s police power because it was concerned with the aesthetic appearance of vacant buildings, not the safety risks posed by blight. After review, the Pennsylvania Supreme Court held that the Commonwealth Court and trial court erred in this regard, and vacated their orders and remanded the matter to the trial court for consideration of Owners’ remaining issues. View "Rufo v. City of Phila." on Justia Law

This appeal involved a proceeding in which parental rights were involuntarily terminated. Throughout the termination proceedings, up to and including the hearing on the termination petition, an attorney guardian ad litem represented the best interests of the children involved. The primary issue presented for the Pennsylvania Supreme Court's review was whether the common pleas court erred in failing to appoint a separate attorney to represent their legal interests. The Court held a child’s statutory right to appointed counsel under Section 2313(a) of the Adoption Act was not subject to waiver. During contested termination-of-parental-rights proceedings, where there is no conflict between a child’s legal and best interests, an attorney-guardian ad litem representing the child’s best interests can also represent the child’s legal interests. As illustrated by the facts of this case, if the preferred outcome of a child is incapable of ascertainment because the child is very young and pre-verbal, there can be no conflict between the child’s legal interests and his or her best interests; as such, the mandate of Section 2313(a) of the Adoption Act that counsel be appointed “to represent the child,” 23 Pa.C.S. 2313(a), is satisfied where the court has appointed an attorney-guardian ad litem who represents the child’s best interests during such proceedings. View "In Re: T.S., E.S., minors, Apl. of: T.H.-H. -" on Justia Law

In November 2014, officers from the Pennsylvania State Police, Bureau of Liquor Control Enforcement (Bureau) conducted an investigation regarding underage persons present inside appellee Jet-Set Restaurant, LLC (Jet-Set), a licensed establishment located in Reading, Berks County. Bureau officers identified four underage females inside Jet- Set. The officers observed three of the four females enter Jet-Set after providing a doorman with identification that showed they were underage. Bureau officers also observed one of the females purchase a bottle of beer inside Jet-Set and another one of the females consume two bottles of beer purchased by another customer. Bureau officers subsequently learned one of the females had been inside Jet-Set before. The Bureau cited Jet-Set for: (1) permitting minors to frequent the premises in violation of Section 4-493(14) of the Liquor Code (frequenting count); and (2) furnishing alcohol to underage minors in violation of Section 4-493(1) of the Liquor Code, 47 P.S. 4-493(1) (furnishing count). The Bureau appealed the dismissal of the frequenting count, but both the Pennsylvania Liquor Control Board and the Berks County Court of Common Pleas affirmed the dismissal on the basis that “frequent” means “to visit often or to resort to habitually or to recur again and again, or more than one or two visits” and the Bureau had not established a violation based on the isolated occurrence observed by Bureau officers in November 2014. The Pennsylvania Supreme Court granted discretionary review to determine whether the definition of “frequent” set forth in Appeal of Speranza, 206 A.2d 292 (Pa. 1965) continued to apply to Section 4-493(14) of the Liquor Code, 47 P.S. 4-493(14), in light of subsequent amendments to the statute. The Court concluded Speranza still controlled and, accordingly, affirmed the order of the Commonwealth Court. View "Pa. St. Police v. Jet-Set Restaurant, LLC" on Justia Law

The Pennsylvania Supreme Court granted allowance of appeal in this matter to consider whether the Commonwealth Court erred in holding that the involuntary movement of a vehicle did not constitute operation of a motor vehicle for purposes of the vehicle liability exception to governmental immunity under 42 Pa.C.S. 8542(b)(1). Appellant Victoria Balentine was the widow of Edwin Omar Medina-Flores, a contractor for Metra Industries (Metra), which was hired by the Chester Water Authority (CWA) to rehabilitate a section of its water distribution system. Medina-Flores was inside a four-foot by four-foot ditch located on the grassy strip between the sidewalk and the curb on the southbound side of the road, when Charles Mathues, an inspector for CWA, approached the worksite in a southerly direction and parked his CWA vehicle, with the engine running, 10 to 15 feet from the ditch. Mathues activated the four-way flashers and the amber strobe light on the roof of the vehicle, which he then exited. He walked to the front of the vehicle where he laid some blueprints on the hood. Approximately five minutes later, a vehicle owned by Michael Roland and driven by Wyatt Roland struck the rear of the CWA vehicle, causing it to move forward. Mathues was rolled up onto the hood and thrown into the roadway. The right front bumper of the CWA vehicle then struck Medina-Flores as he stood in the ditch. The undercarriage dragged him out of the ditch, pinning Medina-Flores under the vehicle when it came to a stop. Medina-Flores died as a result of the injuries he sustained. Mathues was also injured in the accident. The Supreme Court determined movement of a vehicle, whether voluntary or involuntary, was not required by the statutory language of the vehicle liability exception, and reversed the order of the Commonwealth Court, thereby allowing this matter to proceed in the trial court. View "Balentine v. Chester Water Auth, et al" on Justia Law

At issue in this appeal before the Pennsylvania Supreme Court was the "breadth of gubernatorial power" concerning home health care services, and whether Pennsylvania Governor Thomas Wolf's executive order (2015-05) was an impermissible exercise of his authority. The Order focused on the in-home personal (non-medical) services provided by direct care workers (“DCW”) to elderly and disabled residents who receive benefits in the form of DCW services in their home rather than institutional settings (“participants”), pursuant to the Attendant Care Services Act (“Act 150”). After careful consideration of the Order, the Supreme Court concluded Governor Wolf did not exceed his constitutional powers. Thus, the Court vacated the Commonwealth Court’s order, and remanded for additional proceedings. View "Markham, et al v. Wolf" on Justia Law

This appeal centered on a challenge to the practice of requiring private attorneys who may be privy to confidential information related to a grand jury investigation to commit to maintaining the secrecy of all information they may acquire regarding the grand jury. The 40th Statewide Investigating Grand Jury was convened in 2016. Under the authority of the 40th Statewide Investigating Grand Jury, subpoenas requiring the production of documents were recently issued to the Dioceses of Harrisburg and Greensburg (“Appellants” or the “Dioceses”). Their counsel requested a copy of the notice of submission that the Office of the Attorney General (the “OAG”) had provided to the supervising judge. The supervising judge replied that he would furnish a copy of this notice to counsel, but that counsel first would be required to sign and submit appearance form, which included an oath or affirmation to keep all that transpired in the Grand Jury room secret (under threat of penalty of contempt). Counsel declined to accept these terms, however, and Appellants lodged a joint motion to strike the non-disclosure provision from the entry-of-appearance form. They argued that the requirement of secrecy was not authorized by the Investigating Grand Jury Act, both as to the obligation being imposed upon counsel and, alternatively, in terms of the breadth of that duty. The Dioceses’ lead contention was that the secrecy requirement of 42 Pa.C.S.A. Section 4549(b) did not apply to private attorneys, positing that, “[b]y its terms,” Section 4549(b) applies only to persons who are “sworn to secrecy” -- i.e., those who are required in practice to sign an oath of secrecy -- such as “Commonwealth attorneys, grand jurors, stenographers, typists, and operators of recording equipment.” The Pennsylvania Supreme Court concluded an attorney would will be privy to matters occurring before an investigating grand jury shall be sworn to secrecy per the requirements of the Investigating Grand Jury Act, either via an appropriately tailored entry-of-appearance form or otherwise. The obligation of confidentially generally extends to all matters occurring before the grand jury, which includes, but is not limited to, what transpires in a grand jury room. A lawyer otherwise subject to secrecy, however, may disclose a client’s own testimony to the extent that the client would otherwise be free to do so under applicable law. Such disclosure is also subject to the client’s express, knowing, voluntary, and informed consent; the Rules of Professional Conduct; and specific curtailment by a supervising judge in discrete matters following a hearing based on cause shown. View "In Re: 40th Statewide IGJ" on Justia Law